The URL can be used to link to this page

Home My WebLink About96-06193 I 1 \ ~ I i I \ i ~ ... ~ .'? t:.) ...... ~ ~ i i ~ I ~ 1 \ ~ \ 'lC , '-J ......... ./ / r \. ~ - . - .:::l - C,j I'C') Q.. - ;( I <:i ~ ...-.~.-.~.~--,-,"-_...-_..._,,- ,-._"~.''''",''.'''-'--'''' , . . t (J ~(1. (lrt't'1II1WI111 >t , PC: ( (Jlflpllll II, --- - -- - -. - -- - - ____..______..__ ~___~.._____._~~_.__uo___._. I't ~"tj'fI/ . I,~l/'. .' Yo. t'((N'~..,.,I.J vt.' ,,/~3 c~~~ GREENAWALT & COMPANY, P.C. ,AMf3'_ lYUN\ 1I0WAIIIO It CIIUNAWAI,r c_EIDON III IIOffMAN MlCllAn J. IATKE JUflN II KUNGUJ: OlllOflAIt J Kl'.1.1Y It" GRUNAW^LTiI')~I'JlI1I A It RflDlNGfR IlIIlmRfU) r. fDW A.D ROGERS. ,It CIATI'1I0 PUII.IC ACCOUNTANT' P,O, Bo, 6 400 WEST MAlN STREn MECHANICSBUftG PlNNSYLV""IA 17055 171717e1l,~7113 FAJC 17111 7811.2731 "2 WEST paM,.n STInT CAIll5ll, PA 17t1l J 11I7l1"1~1l tAX IJl7jN'n11 INDEPENDENT AUDITORS' REPORT Board of School Dlractors Camp Hill School Distrlct Camp Hill, Pennsylvanla WB have audlted thB accompanying general.purpose flnancial statements of Camp Hill School Distrlct as of June 30, 1996 and for the year then ended, as listed in the precedlng index. These general.purpose financlal scatements are the responsibility of the Distrlct's management. Our responslbllity is to express an opinion on these general.purpose flnancial statements based on our audit. We conducted our audit in accordance wlth generally accepted auditing standards anrl Government Auditing Standards issued by the Comptroller Ceneral of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general.purpose financial statements are free of material misstatement. An audit includes examinlng, on a test basis, evidence supporting the amounts and disclosures in the general. purpose financial statements. An audlt also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general.purpose financial statement presentation. We believe that our audlt provides a reasonable basis for our opinion. In our opinion, the accompanying general'purpose financial statements present fairly, in all material respects, the financial position of Camp Hill School District as of June 30, 1996, the results of its operations and the cash flows of its Proprietary Fund Types and Nonexpendable Trust Funds for the year then ended, in conformity with generally accepted accounting principles. As discussed in Note 16, the District changed its method of accounting for general fixed assets and its method of accountlng for taxpayer. assessed revenues. In accordance wlth Covernment Audltlng Standards, we have also issued reports dated August 16, 1996 on our consideratlon of Camp Hill School Discrict's internal control structure and on its compliance wlth laws and regulatlons. ~A,.LJfi~, PoC. GREENA~&' COMP~NY67p,c, August 16, 1996 Mechanicsburg, Pennsylvania . 1 . MEMBERS _ AMERICAN INSTlnrTE OFCERTlFlEO rtJDLlC ACCOUNTANTS - PENNSYLVANIA INSTTTUT'E OFCERnnED PUDlIC ACCOUNTAt<rT5 Proprietary Fund Tvoes Debt Food Service Servlce $ 8,618 $ 6,357 $ Flduciary Fund Tvoe. Agency ~ (Actlvltles) Account Grotlcs General General Flxed Assets Lon~.Term Debt 35,~34 $ 75,469 $ $ 4,959,772 1,209,021 8,618 3.415.788 $ B.61B $ 6.357 $ 35.834 $ 75.469 $ 6.168.793 $ 3.424.406 $ $ $ $ $ $ 75,469 3,085,000 63,662 275.744 -0- ,D- .O. 75.469 .0. 3 .421..406 6,168,793 B,61B 35,834 6.357 8.61B 6.357 35.834 .0- 6.168.793 .0. $ 8.61B $ 6.357 $ 35 . 834 $ 75.469 $ 6.168.793 $ 3.424.406 CAMP HILL SCHOOL DISTRICT COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND AND ATHLETIC FUND YEAR ENDED ;UNE 30, 1996 Revenue Local sources State sources Federal sources Total revenue Expenditures Instruction Regular programs Special programs Vocational education programs Other instructional programs Community College education programs Total instruction Support services Pupil personnel Instructional staff Administration Pupil health Business Operation and maintenance of plant services Student transportation services Central Other support services Total support services General Fund Variance Favorable Bud2e t Actual (Unfavorable ) $ 7,391,640 $ 7,369,436 $ (22,204) 1,303,761 1,322,510 18,749 75.426 76.970 1.544 8.770.827 8.768.91.2 (1.911) 4,452,067 4,451,564 503 663,643 586,573 77,0"0 74,835 72,872 1,963 83,608 83,234 374 116.093 79.307 36.786 5.390.246 5.273.550 116.696 438,519 416,755 21,764 292,466 265,203 27,263 718,898 651,283 67,615 114.538 108,515 6,023 208,469 185,554 22,915 774,639 731,157 43,482 41,643 41,582 61 3,477 3,056 421 10.679 10.609 70 2.603.328 2.413.714 189.614 (Continued) - 4 . Athletic Fund Bud2et Actual Variance Favorable /Unfavorable 1 $ 93,879 $ 81,004 $ 12,875 93.879 81. 004 12.875 .0- ,0. ,0. -0- -0. -0- 93.879 81. 004 12.875 183.879) 167.677) 16.202 83,879 60,000 (23,879) 83.879 60.000 123.879) .0. (7,677) (7,677) 25.008 25.008 $ ,0. $ 17.331 $ 17.331 CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 1996 1. Reporting entity Camp lUll School District is the level of government which has oversight responsibility and control over activities related to public school education. The report includes services provided by the District to residents within the boundaries of the Borough of Camp Hill. Services provided include a comprehensive curriculum for primary and secondary education as well os special education and vocational education programs. The District receives revenue from local, state and federal source" and must comply wich the requirements of these funding sources. Criteria estsblished in Governmental Accounting Standards Board Statement Number 14 were used in determining the entities to be included in the reporting entity. These criteria include basic items such as financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations, accountability for fiscal matters, scope of public service and special financing relationships. " Based on the foregoing criteria, the reporting entity has been defined to include all the fund types and account groups for which the School District is financially accountable or for which there is a significant relationship. The audit reports of the component unit and joint venture are aveilable for public inspection in the School District's administrative office. Blended Comoonent Units Some component units, despite being lege1ly separate from the primary government, are so intertwined with the primary government that they are reported as part of the primary government. The component units reported in this way are as follows: Camp Hill Borough Authority The Camp Hill Borough Authority (Authority) was created to administer bond issues which provide funds for the construction of the Camp Hill Junior.Senior High School and for subsequent improvements thereto. The Authority leases the Camp Hill Junior.Senior High School to the School District for operation and use for public school purposes. The School District appoints 100\ of the Authority's board members and has guaranteed the debt of the Authority. Based upon these factors, the Authority is included in the School District' s reporting entity as part of Its Debt Service Fund. The Authority operates on a fiscal year ended December 31. The Authority's balance sheet is as of December 31, 1995 and the statement of revenues, expenditures and changes in fund balance is for the year ended December 31, 1995. Separate component unit financial statements are available at the Dis trict office. The Authority, which is a part of the Debt Service Fund, includes a $ 30,000 transfer to the General Fund. . 8 . CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Conc'd.) JUNE 30, 1996 1. Reporting entLty (Cont'd.) Blended Comoonenc Units (Cont'd.l Community RecreatLon Account The Community RecreatLon Account was created co provLde adulc educatLon classes to Camp HLll Borough resLdents. The School DistrLct Ls responsLble for admLnistering the program and it Ls responsLble for the day to day financial transactions of the account. Based upon these factors, che Community Recreation Account is included Ln the School Discrict's reporting entity as part of its Special Revenue Fund. There are no separate component unit financial statements available. The District is also a participant in three other jointly. governed operations, each of which is a separate legal entity that offers educational services to the District and its residents. Each of these entities serves many school districts and are therefore not included as part of Camp Hill School DLstrict's reporting entity. These other entities are as follows: Capital Area Intermediate Unit. provides special education services and programs. Cumberland, Perry Area Vocational-Technical School provides vocational and technical education services and programs. Harrisburg Area Community College education services and programs. provides community college 2. Summary of significant accounting policies The accounting records of Camp Hill School District are maintained on the basis of accounting practices prescribed or permitted by the Manual of Accounting and Related Financial Procedures for PennsylvanLa School Systems, issued by the Pennsylvania Department of Education in accordance with the provisions of the School Laws of Pennsylvania. These practices are in conformity with generally accepted accounting principles as applicable to governmental units. A summary of the more significant accounting policies is as follows: Fund account ing The accounting records of the District are organized on the basis of fund types and account groups. Each fund type may consisc of several different funds. Each fund is a separate entity with se1f.balancing accounts which comprise its assets, liabilities, fund balance/retained earnings, revenues and expenditures/expenses as appropriate. The fund types and the account groups utLlized by Camp Hill School District are as follows: . 9 . CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAl. STATEMENTS (Cont'd.) JUNE 30. 1996 2. Summary of significant accounting policies (Cont'd.) Fund accounting (Cont'd.) Covernmental Fund TVge~ Governmental Funds are those through which most governmental functions of the School District are financed. The acquisition, use and balances of tho School District's eKpendable financ ial resources and the relaced liabilities (eKcept those accounted for in proprietary funds) are accounted for through governmental f.unds. The meesurement focus is upon determInation of changes in financlal resources, rather than upon net income determination. The funds included in this category are: General Fund. The General Fund is used to account for all financial transactions not accounted for in anocher fund. Revenues are primarily derived from local property. per capita and occupation taxes, and State and Federal distributions. Many of the ;nore important activities of the School District, including instruction, administration of the School District and certain noninstructional services are accounted for in this fund. Special Revenue Fund . Special Revenue Fund. are ueed to account for the proceeds of specific revenues that are restricted to eKpenditures for specified purposes. Capital Projects Fund . Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of capital facilities. Debt Service Fund . Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long.term debt, principal. interest and related costs. ProDrietnrv Fund Tvnes Proprietary Funds account for operations that are financed and operated in a manner similar to private business enterprises: Food Service Fund . The Food Service financial transactions associated cafeterias. Fund is used to account for the with the operations of the Fiduciarv Fund Tvoes Fiduciary Funds (Trust and Agency Funds) are used to account for assets held by a governmental unit in a trustee capacity or as an agent for other funds or entities. Nonexpendable Trusts are accounted for in essentially the same manner as Proprietary Funds. Agency Funds are custodial in nature and do not involve measurement of the results of operations: " 10 - CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 1996 2. Summary of s ignifLcant account ing po lLeles (ConC' d. ) Fund accounting (Cont'd.) ~cinry Fund Tynes CCont'd.l Trust Accounts ' Accounts for contributions to and interest earnings on scholarship funds donated to the District, and for payments of scholarship funds to selected students. Activity Fund ' Accounts for programs operated and sponsored by various clubs and organizations within the schools. Activity funds are Agency Funds which are separately accounted for because of legal requirements. Account Grouns Account groups are not funds, They arc only concerned with the measurement of financial position and are not involved with the measurement of results of operation. General Fixed Assets. accounts for the District's investment in land, buildings and equipment. General Long.Term Debt accounts for bonds, capital leases and compensated absences payable in future years. Basis of accounting The accounting and financial reporting treatment applied by the different funds is based on their measurement focus, which determines when revenues and expenditures are recognized. Governmental Fund Tvoes These funds are accounted for using a "current finanelal resources" measurement focus (a modified accrual basis of accounting). Revenues are recorded when susceptible to accrual (both measurable and available). Available means collected within the current period or soon enough thereafter to pay current liabilities. Expenditures are generally recognized when the related fund liability is incurred. Exceptions to this general rule include principal and interest on general long. term debt which is recognized when due. Disbursements for inventory type items and prepaid expenses are considered expenditures at the ti.me of purchase. -11 CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 1996 2. Summary of significant accounting policies (Cont'd.) Basis of accounting (Cont'd.) Fiduciary Fund Tvoes Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Agency Funds are also accounted for using thl! modified accrual basis of accounting. Proorletarv Fund Tvnes The Food Service Fund uses the Pennsylvania Department of Education prescribed "modified enterprise fund" method of accounting, except that equipment used in the operations of the Food Service Fund are included as part of the General Fixed Assets Group of Accounts. The School District does not attempt to allocate "building-wide costs" to the Food Service Fund. Thus, General Fund expenditures which partially benefit the Food Service Fund (utilities, janitorial services, insurance, etc.) are not proportionately recognized within the Food Service Fund; similarly, the Food Service Fund does not recognize a cost for the building space it occupies (no rental of facilities expense). Account CrouDs Buildings. furnishings and equipment are recorded at cost, or at estimated historical cost for those items for which the original cost is unknown. Depreciation is not computed on these assets. Long. term debt is offset by an amount to be provided by future taxation or other revenue sources. General obligation bonds payable in future years are recorded as District debt. Interest on these bonds is recorded when such interest is due. Compensated absences (those for which employees receive pay) are recorded using the termination payment method. A liability is recorded through the use of estimates which apply historical data to current factors. The District maintains records of unused leave and applies the contracted rate for employees eligible for termination payments. The District allows only restricted sabbatical leave and therefore has no recorded liability in advance of the sabbatical. Cash and cash equivalents For purposes of the Food Service Fund statement of cash flows, the District considers all deposits purchased with an original maturity of three months or less to be cash or cash equivalents. - 12 . CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 1996 2, Summary of significant accounting policies (Cont'd.) Budge ts The District adopts, prior to tho beginnLng of each fiscal year, an annual budget for the General Fund and Athletic Fund. A part of chLs budget process is the adoption of local tax rates, subject to various legal restrictions, The District approves subsequent budget revisions (prLmarily transfers between expenditure categories) as necessary. Unused appropriations expiro at the end of each year. Because the District did not adopt a budget for all Special Revenue Funds, the actual-to,budget comparLson for Spedal Revenue Funds contains information for the Athletic Fund only. Revenue - Local sources Real estate, per capita, residence and occupation taxes are levied as of July 1 with a legal, enforceable claim against the taxpayer and/or property. These taxes are recognizable as current revenue when received by the DistrLct during the fiscal year and also estimated to be received by the District within sixty days after the close of the fiscal year. An allowance for estimated uncollectible taxes is recorded based upon a historical estimate of delinquent taxes that will not be received within one year. Deferred tax revenues are based upon a historical estimate of delinquent taxes expected to be received within one year of the fiscal year end. The portion of taxes receivable which is expected to be received within 60 days of June 30 is recorded as revenue in the current year. The remaining amount of taxes receivable which is expected to be received within one year from June 30 is recorded as deferred revenue. All other amounts in the taxes receivable are written off as estimated uncollectible taxes. Other tax revenues, including taxpayer.assessed revenues such as earned income taxes, are recognized as revenue when received during the fiscal year or soon enough thereafter to be susceptible to accrual. Revenue . State source~ State subsidies due the District as current fiscal year entitlements are recognized as revenue in the current fiscal year. Subsidies or grants received in advance of the related expenditures are deferred until such expenditures are incurred. Revenue . Federal sources Federal program funds app Ucab le to expendi tures for the bame program in the current fiscal year but expected to be received in the next fiscal year are accrued as current revenue. . 13 . CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 1996 3. Cash and investments The District's cash and cash equivalents consist of cash balances deposited in financial institutions and repurchase agreemencs purchased by the District from the financial institutions as part of a cash mnnagement account. In addition, the District has pooled liquid investment accounts which are invested in qualified securities through the Pennsylvania Treasury INVEST Program and the Trust Department of local financial institutions. The cash and cash equivalents at June 30, 1996 are categorized as follows: Total Carrying Bank Value Balance $ 455 $ .0. 136,258 136,258 -0. .0, 49,015 l67,557 38.196 38.186 $ 223.924 $ 342.001 Change funds Insured (FDIC) Collateral held in the District's name Collateral not held in the Districc's name Pooled liquid accounts Investments at June 30, 1996 are as follows: Pennsylvania Treasurer's INVEST Program for Local Governments $ 1.486.147 The investments, whose market value approximates cost due to the short term nature of the investments, are categorized as follows: Pooled investmonts $ .0, .0- -0- .0. 1.486.147 Insured (FDIC) Collateral held in the District's name Collateral not held in the District's name Total $ 1.1.86.147 The types of authorized investmentE are limited by State regulations. Investment policies followed during the year did not significantly alter the categorization of investments shown above. . 11. . CAMP HILL SCIIOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd) JUNE 30, 1996 4. DelInquent taxes receivable .., As explained in Note 2, taxes are recorded as revenue only whon receIved, or, in the case of dellnquent real estate taxes, avaIlable withIn sIxty days. The remainIng balance of delInquent texes recolvable are recorded as deferred revenue in accordance wIth school accountIng polIcIes. Deferred tax revenue amounted to $ 149,307 at June 30, 1996. DelInquent Caxe. receIvable as ruflecced on the June 30, 1996 balance sheet consIst of the followIng: Real I2lll Es ta te Personal 1988 and prior years $ 73,336 $ -0, $ 73,336 1989.90 20,825 ,0, 20,1125 1990,91 15,319 -0. 15,319 1991.92 27,946 .0. 27,946 1992.93 51,263 .0. 51,263 1993.94 55,219 5,750 49,469 1994.95 136,060 52,557 83,503 1995-96 220.366 102.263 118.103 600,334 160,570 439,764 Less: Allowance for uncollectib1es (447.564) (71.389) (376.175) Total $ 152.770 $ 89.1Bl $ 63.589 5, Loans receivable . related parties Loans receivable from related parties at June 30, 1996 are as follows: Former Superintendent $ 25,000 Camp Hill 8and 800sters 16.500 To tal $ 41.500 As part of an insurance benefit, the District advanced a total of $ 25,000 toward the premiums of a life insurance policy on the former superIntendent. This noninterest bearing advance is scheduled to be repaid to the District during the 1996-97 fIscal year. The advance is collateralized by an assIgnment of the policy to the District. In 1996, the DIstrict purchased a truck for use by the Camp 11111 Band Boosters at a cost of $ 16,500, and has agreed to advance up to $ 2,000 in addItIonal funds for improvements to the truck. The Band Boosters are to repay at least 15' of the total advance annually untIl thIs Interesc.free loan Is repaId. . 15 ' " CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 1996 6. Generel Fixed Assets During the 1995,96 year, the Distrlct changed tts method of accounting for General Fixed Assets. Prior to 1995,96, the District valued its General Fixed Assets at insured replacement value, which ls not in accordance with generally accepted accounting principles. Effectlve as of December 11, 1995, the Dlstrict had a detailed fixed as.et inventory and valuation performed, and changed its presentation of fixed assets to the estlmated hiscorical cost value resulting from the inventory. The cumulative effect to General Fixed Assets was as follows: Genersl Fixed Assets as previously reported Cumulative effect adjustment $ 19,011,494 (12.862.825) $ 6.148.669 General Fixed Assets, as restated A summary of the changes in the General Fixed Assets since the December 11, 1995 inventory is as follows: Balance, December 11. 1995 Additions DlsDositions Balance, June 30. 1996 Land and buildings Furnishings and equipment $ 4,959,772 $ -0. $ ,0- $ 4,959,772 W88.897 Totals $ 6.148.669 $ 20.124 20.124 .0. 1. 209.021 $ ,0. $ 6.168.793 7. General obligation bonds payable A summary of changes in general obligation bonds payable for the year ended June 30, 1996 is as follows: Payments Beginnlng and other End of Year Additlons Decreases of Year General Obligation Bonds, Series of 1993, interest rates 3.lt to 5.7' $ 3 . 225 .000 $ .0. $ 11.0.000 $ 3.085.000 , 16 . CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 1996 7. General obligation bonds payable (Cont'd.) Scheduled debt service requirements are es follows: i:ul: ~ $ 421,510 420,380 1.23,280 424,650 424,705 423,705 426,453 417,460 422,385 195.545 $ 4.000.073 Princ iOlll 1996.97 1997.98 1998.99 1999.2000 2000.2001 2001.2002 2002,2003 2003,2004 2004.2005 2005.2006 $ 265,000 275,000 290,000 305,000 320,000 335,000 355,000 365,000 390,000 185.000 $ 3.085.000 Total 8. Capital lease obligations Intereot $ 156,510 145,380 133,280 119,650 104,705 88,705 71,453 52,460 32,385 10.545 915.073 $ The District has entered into two capital lease agreements for the financing of certain pieces of equipment. A summary of these agreements nnd the minimum lease payments thereon at June 30, 1996 is as follows: Minimum lease oavrnents Lease #1 Lease #2 :w..t (Photocooierl (Comouters) 1996,97 $ 2,413 $ 22,951 1997.98 2,413 22,951 1998.99 201 22.951 Total minimum lease payments 5,027 68,853 Less: amounts representing interest 597 9.621 Present value of minimum lease payments $ 4.410 $ 59.232 .17, > I2.lli $ 25,364 25,364 23.152 73,880 10.218 $ 63.662 CAMP HILL SCIIOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 1996 10. Compensated absences (Cont'd.) Changes in compensated absences were as follows: Julv 1. 1995 Net Chan2e June 30. 1996 ,"'\ Vacation $ 16,779 Retirement bonuses 18,000 SIck leave 261.31.0 $ 296.119 11. Pension plan $ (11,655) $ (2,000) 16.720) 5,124 16,000 254.620 $ _120.375) $ 275.744 All full time District employees and part tIme employees with at least 80 days or 500 hours of service yearly, are eligible Co participate in The Public School Employees' Retirement System of PennsylvanIa ("System"), a cost-sharing, multiple. employer defined benefit pension plan. The payroll for the employees covered by the plan for the year ended June 30, 1996 was $ 4,848,112; the District's total payroll for that period was $ 5,083,885. Employees who retire at age 62, or age 60 with 30 years of service, or with 35 years of service regardless of age, are entitled to a retirement benefit, payable monthly for life, equal to 2\ of their final average salary times years of service. Benefits vest on reaching 10 years of service. The System also provides for early retirement at age 55 and for death and dIsability benefits. Also, health insurar,ce premium assistance of $ 55 per month is provided for qualified retirees. Covered employees are required by State statute to contribute a percentage of their salary to the plan. This percentage is 5.25\ for employees hired before July 1983, and 6.25\ for employees hired after that date. The District's contribution as a percentage of salaries was 11.72\ for the year ended June 30, 1996, and will be 10.60\ effective July 1996. The District's contribution for the year ended June 30, 1996 was $ 568,196; employees' contrIbutions were $ 272,899. ) The pension benefit oblIgation, which Is the actuarial present value of credited projected benefits, Is a standardized measure of tho present value of pension benefita, adjusted for the effects of projecced salary increases and any step' rate benefits, estImated to be payable in the future as a result of employee service to date. The measure is intended to help users assess the retIrement system's funding status on a going-concern basis, assess progress mado in accumulating sufficient assets to pay benefIts when due, and make comparIsons among public employee retirement syscems. As of June 30, 1994, the most recent actuarial valuation date, the System's pensIon benefit oblIgatIon, as calculated in accordance wIth CASB Statement No.5, totalled $ 26.26 bllllon. Net assets available for benefits as of the same date cocalled $ 23,1.5 bIllIon. The unfunded pension obligatIon under CASB Statement No, 5 tocallcd $ 2.81 billIon. ',) . 19 . -' CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Conc'd.) JUNE 30, 1996 11. Pension plan (Conc'd.) Total contributions to the System from all partIcipatIng employers for the years ended June 30, 1995 and 1994 were $ 0.83 billion and $ 0.93 bIllion, respectively. Ten-year historical trend informacion showing the System's progress in accumulating sufficient assets to pay benefits when due is presented in the System's Comprehensive Annual FinanciaL Report. 12. Postemployment benefits other than pensions The District's contract with the Camp Hill Educaclon Association and its compensation plan for administrators provide for postemployment health and hospItalization benefIts for full. time teachers and admInistrators who have 25 or more years of service wich che Dlscricc. The benefic Is paid by che Discricc coward che recirees' healch insurance premium rangIng from $ 750 co $ 1,000 per year per reciree for a perIod of 2 co 7 years. Both che concribucion amount and the number of years of paymenc depends on che recirees' years of service. The benefit is paid only uncil che year in which che reciree is eligible for full social securicy benefics. The Discricc finances chis benefic on a pay-as-you'go basis. For che year ended June 30, 1996, there were nine recirees receiving chis benefit aC a tocal cosC co che Discricc of $ 8,690. 13. Inter-fund transfers General Fund revenues include incer,fund transfers of $ 30,060 received from che Debt Service Fund. General Fund expenditures include inter. fund transfers of $ 403,049 summarIzed as follows: Achlecic Fund RecreatIon Fund Band Uniform Fund Debt Service Fund Food ServIce (non,cash cransfers) $ 60,000 4,750 3,000 301,970 33.329 Tocal $ 403.049 14. Risk managemenc The Dlscrict Is exposed co various rIsks of loss relaced to torts; theft of, damage co, and destrucclon of assets; errors and omIssions; Injuries Co employees; and natural dIsasters. The Discrict malncains commercial insurance coverage coverIng each of chose risks of loss. Managemenc be lieves such coverage is suffIcient co preclude any sIgnlficanc unInsured losses co che Dlscrlcc. SeCtled claims have noc exceeded this commercIal coverage In any of the past three fiscal years. . 20 . CAMP HILL SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 1996 14. Risk management (Conc'd.) For purposes of unemployment compensation laws, the District has elected not to be covered by the Pennsylvania Unemployment Compensation Fund, Any unemployment claims are paid by the District on a quarterly basis as incurred. The District is a member of a group of School Districts who have joined together to self. insure their workers' compensation exposure. The District pays annual contributions to the group based on a formula utilizing the District's own claim experience and annual payroll. Claims in excess of the District's retention experience are paid by a Central Fund within the group and, if necessary, by an insurance company carrying excess liability coverage. 15. Commitments and contingencies The collective bargaining agreement between the District and the teaching staff was renewed during 1995,96, and is effective for the period July 1, 1996 through June 30, 2000. In the normal course of business, the District is subject to legal disputes and claims. The Discrict does not anticipate any material losses from any pending or threatened litigation. In the normal course of preparing for the subsequent school year, the District has awarded bids for various supplies, fuel contracts, etc. No major commitments in excess of routine requirements have been made by the District. The District is also audited by the Commonwealth of Pennsylvania, Department of the Auditor General. Findings, if any, from these audits could result in the repayment of funds, or the receipt of additional funds. 16, Change in accounting methods As of July 1, 1995, the District changed its method of accounting for taxpayer. assessed revenues. Governmental Accounting Standards Board Statement Number 22, "Accounting for Taxpayer'Assessed Revenues in Governmental Funds", became effective for fiscal years beginning after June 15, 1994. Taxpayer.assessed revenues are now on the modified accrual basis of accounting. Previously, the cash basis was used Co account for taxpayer,assessod revenues, The District chenged its accounting method, by recording the cumuletive effect adjustment to the July 1, 1995 fund balance of the General Fund, as fo llows: Fund balance, as previously reported Cumulative effect adjustment $ 521,699 167.727 -' Fund balance, as restated $ 689 .1.26 . 21 . J ~ '" (\ q \J ~ (VI ,- ~ M ~,' c~ ,- . - . ~ 11.(: ,y, .. ; '\ ,- ~( '.- .,j'.; ~;' ~" .,.., ~ ~ .'- (' 1;:; ~ N :,r,; 1- -~ -' . ~ : .. r~. C": " ,[,) , u. :.:.: .:.l.. ,..... ~ '-,~I .. 0 " 0' (J w